What should be the selling strategy of a stock for an inactive investor?

T E: What should be the selling strategy of a stock for an inactive investor?
A friend sells his stock whenever the stock drops 7% after purchase or his cost. That strategy saved him a lot in the past year when the market dropped about 50%. However, that also means, he lost all his gains with his stocks when the stock market dropped.

Should he have a strategy to sell after GAINING, say 50%, and then re-buy the stock back, while maintaing the SELLING strategy of 7% of cost?

Answers and Views:

Answer by jerry w
From your question, it sounds like your friend sells the stock to lock in a loss, and then buys it back. Is that what you mean?

I don’t really see the purpose of selling in that case. Does he have tax reasons to lock in a loss? When he sells and buys back the same security, he isn’t changing his investment, he is only paying unnecessary transaction fees.

If he wants to continue to invest in the same stock, he should just hold it.

Answer by Kitty
may be the link can help you!